Financial Power Of Attorney
WHAT IS A FINANCIAL POWER OF ATTORNEY ?
A Financial Power of Attorney, also called a Durable Power of Attorney, is a document that authorizes someone to manage your personal property and financial affairs when you can't handle them yourself. Practically speaking, if you become incapacitated, your power of attorney takes over to manage your finances and make critical decisions that need to be made. Without this document, a costly court case is often required to appoint a guardian or conservator on behalf of an incapacitated person. Once a case is open, the court must periodically monitor the case and hold hearings until capacity is regained or the person passes.
CHOOSING YOUR POWER OF ATTORNEY ?
When creating this document, the most important decision is deciding who will be your power of attorney – the person who will make decisions for you when you can't make them for yourself. This is a position of trust. Most people select a family member or trusted friend. Therefore, it is a good idea to ask your proposed power of attorney if they are willing to take on that role before you name them.
WHAT DOES A POWER OF ATTORNEY DO ?
The scope of your power of attorney is up to you. Powers of attorney can be as general or as specific as you desire. In addition, depending on your needs and wishes, you will have the ability to individually select powers or limit powers as you see fit.
Many people grant their power of attorney full authority to make decisions and handle all aspects of their financial affairs, as this broadly protects you if you're incapacitated. Other people choose to select narrow areas, such as the management of a business or a real estate transaction, or choose one person for some transactions and another person for other transactions. Again, it will be up to you to decide what you need.
If you're incapacitated, your power of attorney will likely have to communicate with third parties on your behalf. This could be a bank, CPA, or utility company. It can also include dealing with the government to protect your public benefits like Medicaid, VA benefits, and Social Security. A power of attorney will be taken into consideration by these agencies and any judge in making important decisions. Most companies and agencies will refuse to talk to any third party on your behalf without a power of attorney.
If you're a business owner, your Power of Attorney will manage the financial aspects of your business. This can include authorizing payroll, paying bills, paying rent, and assuring that the company does not collapse because you are not there to approve the finances of the business.
WHY DO YOU NEED A FINANCIAL POWER OF ATTORNEY ?
Without important estate planning documents, it is not uncommon for a court fight to ensue to determine what the incapacitated person wanted. A comprehensive and well-drafted power of attorney tailored to your situation, combined with other essential powers of attorney such as health care directives, will eliminate the fight between family members over your wishes. In addition, once your wishes are written down in a power of attorney, it becomes is compelling evidence of your intent, which is hard to dispute.
HOW DO I CREATE MY POWER OF ATTORNEY?
Don't put off creating your Power of Attorney. Create it today to ensure your financials are always taken care of and alleviate your family's burden. MyKeyDocs is an app-based platform that helps you create your personalized and State-Specific virtual legal documents. It's not just free online legal forms that are confusing and incomplete; it's complete DIY estate planning documents right from your phone. So create your Power of Attorney today – whether it's a California Power of Attorney, a New York Power of Attorney, or Texas Estate Planning documents, MKD can help no matter where you're located.